Government

Medicare program takes aim at medical equipment fraud

NEWS IN BRIEF — Posted July 23, 2007

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The Dept. of Health and Human Services is targeting durable medical equipment, orthotics and prosthetics suppliers that federal officials say are defrauding Medicare. Under a two-year pilot program, the department will require suppliers in South Florida and Southern California to reapply for participation in Medicare under stricter vetting requirements. Firms that change addresses without notification or that fail to list directors or managers with felony convictions will become unable to bill Medicare.

If the pilot proves successful, HHS may expand the effort nationwide.

The department estimates that fraud in this area of Medicare billing is costing the program hundreds of millions of dollars each year.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/07/23/gvbf0723.htm.

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